Apr 2009 Financial News

CL crisis delaying Angostura $$ statements

Apr 02, 2009

Rum producer Angostura Holdings has delayed its financial statements for 2008 because of a number of complex inter-party deals between itself and its parent, the CL Financial Group.

Angostura board member and CL Financial finance director Michael Carballo said on Tuesday the Laventille-based spirits company delayed the publication of its annual results because auditing firm PriceWaterhouseCoopers was continuing a review of the transactions between CL Financial and Angostura.

Over the years, CL Financial and Angostura have accumulated running balances in their accounts based on purchases of assets between the two entities.

In a statement Tuesday, Angostura's board explained that the delay was due to the need to determine how the various inter-company receivables due from CL Financial would be treated, following the Memorandum of Understanding signed by CL chairman Lawrence Duprey and Finance Minister Karen Nunez-Tesheira to rescue the cash-strapped group.

An injunction granted by the High Court preventing CL Financial from disposing of assets within the Group is another consideration in the publication of the Angostura results, the company's directors said.

Carballo said during a brief telephone interview there was still significant work to be done to complete the financial statements but expected the audited results would be published on or before April 30.

He said he met Trinidad and Tobago Stock Exchange general manager Wain Iton and informed him of the delay.

Angostura's board said notwithstanding the ongoing effect of the MOU and court injunction on the CL Financial Group, the Angostura group would continue to build its brand by investing in the company's core spirits business locally and internationally and this would add value to shareholders.

Government and the Central Bank continue to examine the sale of CL Financial assets including a stake in Republic Bank, Methanol Holdings Ltd and other assets to make up a possible $10 billion deficit at CLICO, the country's largest insurance company.


Source:
Curtis Rampersad
Trinidad Express
Thursday, April 2nd 2009

http://www.trinidadexpress.com/index.pl/article_news?id=161459997